'False, Misleading...' Adani Group On Cancellation of Sri Lanka Power Purchase Deal - See Statement

The Adani Group , led by Gautam Adani, has refuted claims that Sri Lanka officially revoked its power purchase agreement (PPA) with the Indian conglomerate due to corruption allegations. The group has clarified that reports suggesting the cancellation of its wind power projects in Sri Lanka are misleading.

Clarification of Reports on Alleged Revocation
Earlier, news agency AFP reported that the Sri Lankan administration, under President Anura Kumara Dissanayake, had launched an investigation into the Adani Group's local projects after allegations of bribery and concealed payments surfaced from a US report dated November 19, 2024. However, the Adani Group issued a statement dismissing these claims as "false and misleading." They emphasized that the PPA for the 484 MW wind power projects in Mannar and Pooneryn had not been revoked.

Government's Review Process for Energy Tariffs
The statement further clarified that the Sri Lankan Cabinet’s decision on January 2, 2025, to reevaluate the tariff approved in May 2024 is a standard procedure. It is common for new governments to review energy agreements to ensure that terms align with current priorities and policies. The group reassured that Adani remains committed to its investment in Sri Lanka’s green energy sector.

Adani's $1 Billion Green Energy Investment Commitment
Adani Green Energy emphasized its continued dedication to investing $1 billion in Sri Lanka’s renewable energy sector, driving both economic growth and the country’s transition to green energy. The statement reinforced that Adani’s plans for wind power in Sri Lanka are still moving forward.

Stock Impact of Alleged Cancellation News
Following the news of the alleged cancellation, Adani Green Energy's stock experienced a drop, reaching a daily low of Rs 1,008. The stock closed at Rs 1,011.95, reflecting a decline of 0.93%.

Power Purchase Agreement
In May 2024, the former Sri Lankan government had signed a deal with Adani to purchase electricity at a rate of US$0.0826 per kilowatt from a planned wind power facility in the northwest region of Sri Lanka. However, the agreement faced opposition from activists who argued that smaller renewable energy projects could provide electricity at much lower costs compared to Adani’s proposal.